Private railroad car tax.

The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 23 vote of the membership of each house. Under the Private Railroad Car Tax Law, the State Board of Equalization assesses and taxes private railroad cars operated upon railroads in this state by class based on the owner's acquisition cost, less depreciation, as provided. In making an assessment, the board is required to determine the average number of each class of private railroad cars physically present in the state in the calendar year immediately preceding the fiscal year in which the tax is imposed upon the basis of car days. This bill would instead require the board, in making the assessment, to determine the physical presence of private railroad cars in the state in the calendar year immediately preceding the fiscal year in which the tax is imposed upon the basis of mileage. Existing law also requires the board, in making the above assessment, to value the cars by class based on the owner's acquisition cost, less depreciation, and sets forth the manner in which depreciation is calculated for each class of cars, as specified. This bill would instead require the board, in making the assessment, to value the cars based on the owner's acquisition cost, including additions and betterments, less depreciation, and would revise the manner in which the depreciation is calculated, as specified. Existing law requires the board to exclude from the California factor car mileage, car days, or other data that occurs while cars are not qualified for revenue service and are in a repair facility in the state, as specified. Existing law defines the term "class of private railroad cars" for these purposes. This bill would delete the definition of the term "class of private railroad cars" and would eliminate the requirement that the board exclude from the California factor car mileage, car days, or other data that occurs while cars are not qualified for revenue service and are in a repair facility in the state.